Cloud Wars: Google Accuses Microsoft of Anti-Competitive Practices

Cloud computing is one of the fastest-growing and most lucrative sectors in the tech industry, with global revenues expected to reach $832 billion by 2025. However, not all cloud service providers are playing fair, according to some of their rivals.

In particular, Alphabet's Google Cloud has accused Microsoft of anti-competitive cloud computing practices and criticized imminent deals with several European cloud vendors, saying these do not solve broader concerns about its licensing terms. Google Cloud's Vice President Amit Zavery told Reuters that Microsoft is using its dominance in the on-premise software market, as well as its popular products such as Office 365 and Windows, to tie customers to its Azure cloud platform and make it hard for them to switch to other providers.

Zavery said that Microsoft imposes bundling practices, pricing restrictions and licensing terms that discourage customers from using multiple cloud vendors or migrating their data and applications to other platforms. He also said that Microsoft selectively offers concessions to some smaller European cloud vendors who have complained to antitrust regulators, but does not make those terms available to everyone.

Zavery urged the European Union antitrust regulators to take a closer look at Microsoft's cloud computing practices and ensure a level playing field for all competitors. He said that Google Cloud has raised the issue with antitrust agencies and is willing to cooperate with any investigation.

Microsoft has denied any wrongdoing and said that it has a healthy second position in the cloud market, with just over 20% of global cloud services revenues. It also said that it is committed to the European Cloud Community and their success. However, Google Cloud is not the only one who has voiced concerns about Microsoft's cloud computing practices. Amazon, the market leader in cloud services, also slammed Microsoft's changes on Tuesday, saying they limit competition and innovation.

Amazon said that Microsoft's changes make it more expensive and difficult for customers to use multiple cloud providers or move their data and applications between platforms. It also said that Microsoft's changes are designed to lock customers into its ecosystem and create barriers for entry for new and innovative cloud providers.

Amazon and Google Cloud are both competing with Microsoft for lucrative contracts with governments and large enterprises around the world. The stakes are high, as cloud computing is seen as a key driver of digital transformation and innovation across various sectors and industries.

Cloud computing customers should have the freedom and flexibility to choose the best cloud service provider for their needs, without being restricted by unfair or anti-competitive practices. By ensuring fair competition in the cloud market, regulators can foster more innovation, diversity and customer satisfaction in the long run.